DEFINITION
Representations And Warranties

"Representations and warranties": A section of a loan agreement in which the borrower asserts the truth of information regarding the borrower's state of affairs. They generally assert that the borrower is empowered to borrow, that it is legally constituted and so forth. They may also assert that there is no legal claim against the borrower at the time of the agreement being made. Whilst there are some technical differences between the effects of representations and of warranties, most loan agreements in practice set out these clauses to be both representations and warranties.
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